YES Bank shares in focus after board clears plan to raise Rs 16,000 crore in equity and debt

YES Bank shares will be in focus on Wednesday after the private lender announced late Tuesday that its board has approved a fundraising plan of up to Rs 16,000 crore for FY26—comprising Rs 7,500 crore through equity and Rs 8,500 crore via debt instruments. The capital raise will be executed in multiple tranches, across both domestic and international markets.

In a regulatory filing, YES Bank said the equity component would be raised using various permissible instruments, with total dilution capped at 10%. The board also approved raising debt capital through instruments denominated in Indian or foreign currency, aggregating to Rs 8,500 crore.

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As part of its strategic partnership with Japan’s Sumitomo Mitsui Banking Corporation (SMBC), YES Bank will amend its Articles of Association to enable SMBC to infuse fresh equity and increase its stake. On May 9, SMBC signed a definitive agreement to acquire a 20% stake in YES Bank for Rs 13,483 crore via a secondary market deal.

Under the agreement, SMBC will receive pro-rata pre-emptive rights to participate in future equity issuances to maintain its stake and will be entitled to nominate two non-executive, non-independent directors to YES Bank’s board. State Bank of India (SBI), a key shareholder, will retain the right to appoint one nominee director.

YES Bank last raised Rs 15,000 crore in July 2020 through a follow-on public offer. In March 2022, it secured Rs 8,887 crore from Carlyle and Advent International via a preferential issue, with both investors acquiring a 9.99% stake each.

As of March 2025, the bank reported a Common Equity Tier 1 (CET1) ratio of 13.5% and an overall capital adequacy ratio of 15.6%.

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YES Bank Share Price Target and Performance

According to Trendlyne, the average target price for YES Bank is Rs 16, indicating a downside of around 21% from current levels. Among the 12 analysts tracking the stock, the consensus rating is ‘Sell’.

On Tuesday, YES Bank shares closed at Rs 20.85 on the BSE, down 10.4%, while the benchmark Sensex fell 0.78%. The stock has surged 28% in the past three months but is down 11% over the past year. YES Bank’s market capitalisation currently stands at Rs 65,387 crore.

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